Smart Powerr Corp.

What they do

Smart Powerr operates through PRC subsidiaries including Yinghua, Sifeng, Shanghai TCH, Xi'an TCH, Erdos TCH, Huahong, Xi'an Zhonghong New Energy Technology, and Zhongxun. Historically it developed Build-Operate-Transfer waste-energy recycling projects that captured waste pressure, heat, and gas from steel, cement, coking, and metallurgy plants to generate electricity. It now says it is transforming into an energy storage integrated solution provider. Its principal executive offices are in Xi'an City, Shaanxi Province, China.

Revenue drivers

• Operations and maintenance contract — In 2025 the company signed an Operation and Maintenance Contract for power stations with third parties totaling RMB3.0 million (US$0.4 million) per year for 10 years, from 2025 to 2035, and recognized $262,509 of revenue on a time basis in 2025.
• Waste-energy recycling projects — Historically the core business, using a Build-Operate-Transfer model to sell, lease, and operate energy-saving systems that capture waste heat and pressure from industrial customers; the 10-K describes this as the historical base but reports only the new O&M contract revenue for 2025.
• Energy storage integrated solutions — Stated future direction targeting industrial and commercial complexes, large-scale PV and wind power stations, remote islands without electricity, and smart energy cities with multi-energy supplies; no revenue from this segment is disclosed in the excerpts.
• Financing and other income — Non-operating income of $156,100 in 2025 included $264,346 of interest income from financial support provided to other companies and a $200,000 reversal of a provision for impaired prepayments.

Recent performance

Full-year 2025 revenue was $262,509 with cost of sales of $145,895 and a 44% gross margin, compared with no reported sales in 2024. Operating expenses rose to $3,132,219 in 2025 from $1,093,468 in 2024, driven by increases of $948,648 in financing costs, $831,520 in share-based compensation, and $168,204 for non-deductible prior-year input VAT. The net loss widened to $2,900,041 in 2025 from $1,559,012 in 2024, with income tax expense of $40,536. For the three months ended March 31, 2026, revenue was $108,353 versus $20,625 in the prior-year quarter. At March 31, 2026, total assets were $159.7 million, liabilities $11.9 million, and shareholder equity $147.7 million, including $158.8 million of cash and equivalents.

Strategy

The company states it is transforming and expanding into an energy storage integrated solution provider and has produced revenue since 2025. It says it plans disciplined, targeted expansion into markets it currently does not serve and is actively exploring applying energy storage to new industries and segments with high growth potential. It has signed a 10-year power station operations and maintenance contract running from 2025 to 2035. No capital expenditure or investment figures for the energy storage transition are disclosed in the excerpts.

Risks

• Nasdaq listing compliance — On May 1, 2026, Nasdaq notified the company that its closing bid price had been below $1.00 for 30 consecutive trading days, and it is not eligible for a standard compliance period because of a reverse stock split in the prior year; the company appealed to a Hearings Panel on May 7, 2026.
• Customer concentration — The 10-K states the company has historically had only a limited number of projects in process at any time and that revenues have come from a small number of waste-energy projects, so results depend on winning new orders and contracts.
• Dependence on customer operations — The business acquires waste pressure, heat, and gases from steelworks, cement, coking, or metallurgy plants, so power generation and revenue depend on adequate supply from customer production, and contracts often pay based on energy supplied.
• China macroeconomic and capital access — The 10-K risk factors state that a slowdown in Chinese economic growth, combined with reduced access to capital for private enterprises and potential inflation, could adversely affect financial condition and raise costs.

Outlook

Management reports an increase in quarterly revenue for the first quarter of 2026 to $108,353 from $20,625 a year earlier, supported by the 10-year power station O&M contract recognized over time. The company says it is continuing its transformation into energy storage integrated solutions and is exploring new market segments. However, the 10-K discloses a 100% valuation allowance against deferred tax assets because of continuing operating losses at the US parent, and the company is appealing a Nasdaq bid-price delisting determination. The excerpts do not provide specific 2026 revenue or earnings guidance.